A scheme to help new businesses in targeted areas of the United Kingdom
On 19 May 2010, the Chancellor of the Exchequer said, in a speech to the Confederation of British Industry:
“I want to help new businesses by abolishing employers’ National Insurance Contributions on the first ten jobs they create.”
10.At the Emergency Budget on 22 June 2010 the Budget documentation included the following:
“1.87The Government’s strategy to support private sector enterprise in all parts of the UK aims:
to encourage the creation of private sector jobs in regions reliant on public sector employment, through reducing the cost to new businesses of employing staff. The Government will shortly announce details of a scheme to help new businesses in targeted areas of the UK that need it most. During a three year qualifying period, new businesses which start up in these areas will get a substantial reduction in their employer National Insurance Contributions (NICs). Within the qualifying period, these employers will not have to pay the first £5,000 of Class 1 employer NICs due in the first twelve months of employment. This will apply for each of the first 10 employees hired in the first year of business and operate in selected countries and regions. Subject to meeting the necessary legal requirements, the scheme is intended to start no later than September 2010. Any new business set up from 22 June 2010 which meets the criteria set out in the forthcoming announcement will benefit from the scheme.”(2)
